Debarati Basu
XLRI- Xavier School of Management
FinanceFinancial economicsEmerging marketsAccountingOpportunismArbitrage pricing theoryCapital marketBusinessEconomicsConsumption-based capital asset pricing modelCapital asset pricing modelDiversification (finance)Investment theoryInsiderContext (language use)Corporate governanceMonetary economicsCost of capitalCapital (economics)Conservatism
11Publications
4H-index
57Citations
Publications 10
Newest
#1Debarati Basu (XLRI- Xavier School of Management)H-Index: 4
Purpose: The purpose of this study is to investigate how private and public firms vary with respect to unconditional conservatism levels in financial reporting. The study also examines whether adoption of international accounting standards affects the association between conservatism and organizational form. Design/methodology/approach: This study uses a large Indian sample of almost 63,000 firm-year observations across more than 15,500 firms (~41% of which are private firms) over 10 years (2011...
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#1Debarati Basu (XLRI- Xavier School of Management)H-Index: 4
#2Shabana Mitra (IIMB: Indian Institute of Management Bangalore)H-Index: 5
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Democratization should make locations more favourable for MNEs internationalizing. Yet the association of democracy with economic growth and foreign investment remains inconclusive. Contrary to and in response to literature, we show that dichotomous and rules-based democracy measures have a U-shaped relation with GDP and FDI. We thus, create a novel index of effective democracy that is continuous and uses rules weighted by implementation. We then show a clear positive linear association of effec...
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#1Sumit Agarwal (NUS: National University of Singapore)H-Index: 54
#2Debarati Basu (XLRI- Xavier School of Management)H-Index: 4
Last. Jian Zhang (HKU: University of Hong Kong)H-Index: 7
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In this paper, we employ a unique tax experiment and dataset in a highly salient tax rate environment to examine consumer response to complex and uncertain tax reforms. Tax reforms raise some fundamental questions in public finance: How does consumption respond to tax change? How is the tax burden distributed among the stakeholders? More importantly, are these answers conditional on whether the tax regime (and not the tax rate) is salient? We find that unpredictability of tax policy changes indu...
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#1Debarati Basu (XLRI- Xavier School of Management)H-Index: 4
#2Kaustav Sen (Pace University)H-Index: 7
We examine the impact of a regulation that requires only disclosure of ownership information and no real change of firm fundamentals, on a firm’s access to capital. As a first of its kind corporate governance regulation across the globe, Clause 35 of the Securities Exchange Board of India required firms to classify shareholders into insiders and outsiders only, with no other structural changes. Using a large sample of publicly traded firms in India, a market characterized by weak enforcement and...
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#1Debarati Basu (XLRI- Xavier School of Management)H-Index: 4
#2Shabana Mitra (IIMB: Indian Institute of Management Bangalore)H-Index: 5
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Banks remain the most important credit source globally despite large-scale financial development. However, banking continues to be plagued by rising costs and information asymmetry. In this context, we show how an additional borrower characteristic, specifically the borrower’s network strength, helps reduce costs by altering the bank’s lending decisions. The literature on borrower network remains largely empirical and borrower-based. We fill this void by being the first to theoretically model th...
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#1Debarati Basu (XLRI- Xavier School of Management)H-Index: 4
#2Kaustav Sen (Pace University)H-Index: 7
By focusing on the more pervasive unconditional conservatism, we provide fresh insights on how conservatism can be detrimental to financial reporting quality. We examine whether unconditionally conservative (UC) firms engage in more real earnings management (REM) in order to meet or beat earnings benchmarks (MBE). UC firms are expected to be prudent with persistently lower earnings. REM, on the contrary, is an expensive way, with long-term consequences, of manipulating earnings upwards. As expec...
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#1Debarati Basu (IIM-C: Indian Institute of Management Calcutta)H-Index: 4
#2Kaustav Sen (Pace University)H-Index: 7
Using a large sample of business-group-affiliated firms in India, we investigate whether corporate financial decisions that create internal capital markets are influenced by the extent of insider ownership. We hypothesize that insiders want to control more capital, motivated either by opportunism or efficiency. We distinguish opportunism from efficiency based on whether sales decrease or increase in the year after financial decisions are taken. We find that as insider ownership increases, a firm...
12 CitationsSource
#1Debarati Basu (IIM-C: Indian Institute of Management Calcutta)H-Index: 4
#2Deepak Chawla (International Management Institute, New Delhi)H-Index: 13
With increasing doubt about the validity of the one-factor Capital Asset Pricing Model in pricing financial assets, development of newer models or extensions has become the order of the day. This paper applies one of these developments—the multi-factor Arbitrage Pricing Theory (APT) to explore the relationship between portfolio returns and selected macroeconomic variables. While the chosen model has been extensively tested in developed markets, few such attempts have been made in emerging capi...
7 CitationsSource
A deluge of tests have been conducted on asset pricing models in literature, more so on the Capital Asset Pricing Model (CAPM), to ascertain their validity, efficiency and efficacy in different markets in explaining asset prices. Such tests have been either individual in nature wherein any one model has been studied or comparative in nature where one model has been compared with another. Many studies have also resulted in the development of new models or extensions to the existing theory. Howeve...
66 CitationsSource
#1Debarati BasuH-Index: 4
#2Somashree Ghosh Dastidar (International Management Institute, New Delhi)H-Index: 1
Last. Deepak Chawla (International Management Institute, New Delhi)H-Index: 13
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This article estimates two models for the takeover selection process in India by identifying discriminating variables that help delineate bidder and target firms. Both discriminant analysis and logit regression have been used for the purpose of developing the appropriate frameworks based on sample data of companies involved in a merger, acquisition or takeover during the period 2002 to 2005. Variables tested were measures of leverage, size, liquidity, profitability, growth, operating efficiency,...
9 CitationsSource